Options for the Dunedin City Council include authorising an overspend and continuing with the Albany Street Connection project, seeking to reduce costs by "value engineering", proceeding with a pared-back version that does not include a cycleway, and pausing the project while investigating an alternative cycleway route.
The council is to debate the issue today.
Tenders for the Albany St project closed last Wednesday and the council said there were two — both above the $3 million budget in the council’s 2025-34 long-term plan.
NZ Transport Agency Waka Kotahi (NZTA) had agreed to chip in about $1.5m.
An urgent report for today’s council meeting was released publicly yesterday, although commercial considerations remained confidential.
The report referred to an alternative proposal by engineer Stephen Macknight for a Water of Leith cycleway.
This had come up during the procurement period for the Albany St work and was promoted in a notice of motion signed by five councillors, but the proposed notice was not accepted in the meeting agenda.
The urgent staff report for today’s meeting was considered to cover the same subject.
The Albany St project had been delayed until recently "for a range of reasons, including the completeness of public consultation and subsequent council decisions", the report said.
There had also been legal concerns, the council acknowledged. It nonetheless said the consultation process had been robust.
Today’s discussion will be the third time in four months that the status of the Albany St project has been in question.
The council declined to support a series of parking changes in August and then reversed that call a month later. The matter is being revisited again, a month after the election.
"Given the political interest in this project, the prices received, and the proposal of an alternative route, direction is now needed from council on how it wishes to proceed," the staff report said.
Staff highlighted funding from NZTA was in place and it was secured under the previous government’s transport policy settings.
The 2024-27 government policy statement did not support new cycling and walking initiatives.
The transport agency had indicated any new or alternative route would have to be reassessed before funding decisions could be made, the report said.
Five options were put in front of councillors.
The council could proceed with a larger budget for the Albany St project.
It might instead look to "value engineer" the existing design to bring it closer to budget.
"This design would include the cycleway, but probably have fewer plantings, would involve removal of raised crossing points at Grange, Leith and Hyde Sts and the pedestrian crossing at Riego St."
The third option would cut the cycleway and move ahead with two pedestrian crossings and intersection improvements.
Option four would put a pause on Albany St while looking at whether an option along the Water of Leith was feasible. This may not attract funding from the transport agency, the report said.
Option five was described as "something different from the above outlined options, or a combination".
